An Explanation Of The Strategic Management Process

Both short-run and long-run objectives are necessary. The strategic objectives for the organization should at minimum specify: • the market position and competitive standing the organization aims to achieve • annual profitability targets • key financial and operating results to be achieved through the chosen activities • any other milestones by which strategic success will be measured Formulating Strategy The end component of strategic management and discloses how the intended results will be accomplished. This include both the short-run and long-run results. Objectives are the “ends” and strategy is the “means” of achieving them. How to respond to changing conditions • what to do about shifting customer needs and emerging industry trends • which new opportunities to pursue • how to protect against competitive pressures and other externally imposed threats How to allocate resources • divisions, business units and functional departments • decisions that spur capital investment and human resources in the strategic plan. How to compete • how to develop customer appeal • how to position the firm against rivals • to emphasize some products and de-emphasize others • meet specific competitive threats Actions and approaches that are necessary implement the strategic management process in all the major functional areas,